Warehouse buys Noel Leeming Group

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#731069 12-Dec-2012 08:17

Loaf: I've never really liked Noel Leeming or Bond & Bond.

Noel Leeming often has un-competitive prices, selling at the recommended retail prices of manufacturers (so its never the best place to go when you want bang for buck). They also usually have older products, I remember in 2007 they would always take forever to get the latest Mac products in and would try to get rid of outdated Mac products-- they tried to sell me an old laptop in a bashed case for more than DSE was selling the newer Intel MacBook.

And Bond & Bond is just a facade they stick directly next to Noel Leeming shops, as a way of getting unsuspecting people to go next door, see the same product for cheap and think "OH BOY" lol.

I've found Noel Leeming to be pretty good about price matching physical retailers on pricespy, and giving flybuys as well.

I'll also call the Bond & Bond brand shut in a few years. Sure there's a bit of goodwill built up, but the duplicate property and advertising costs surely can't outweigh it

tdgeek

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#731142 12-Dec-2012 09:49

Dunnersfella:
tdgeek: Gross margin or net margin? Net I assume.

Absorption of admin expenses will lessen the NL expense ratio per sales. Simplistically, WH admin is 10 staff, NL is 4, both are 11. Net margin will increase, alongside other efficiencies from combinig resources and reducing what will be surplus expenses. Long term, a potentially powerful, all encompassing retaill base. I'd probably be concerned if I was an employee of HN.

I'd be jumping for joy if I was a Noel Leeming employee (yaaay payrise, finally earning above minimum wage!) and running for cover if I was working at Bond & Bond's.
I don't know if Hardly Normal / Smiths City / JB Hifi / Powerstore / LV Martin / Dick Smith etc staff are 'concerned'... change would be something they'd have to be used to by now, surely?
Of course, not everyone is impressed with the move...
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10853304

Yes, change is normal. If HN had taken over NL, thats normal, a normal change, but I see The Warehouse having a much higher chance of success due to size and ability to grow.

Bee

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#776746 8-Mar-2013 11:16

Seems Bond and Bond will be gone by lunchtime.. I mean April

http://www.stuff.co.nz/business/industries/financial-results/8399078/Bond-Bond-merging-with-Noel-Leeming

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10869977

Doing your best is much more important than being the best.

old3eyes

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#776831 8-Mar-2013 12:49

Wonder if they will rebrand the Bond and Bond store where there is no Noel Leemings ??

Regards,

Old3eyes

Bee

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#776833 8-Mar-2013 12:51

Yes?

"eight Bond and Bond stores will become Noel Leeming stores,"

Doing your best is much more important than being the best.

khull

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#776870 8-Mar-2013 13:20

I use Noel Leeming for show rooming. I just couldn't be bothered having to ask for a price other than RRP in store. Also our HN down the road sells the exact same product for a better price and I hardly have to speak to anyone for it.

Dunnersfella

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#777079 8-Mar-2013 20:44

I wasn't aware that Bond's had been around since 1875!
Still, the on-line 'presence' may be interesting. Or, it may just be a way to run Noel Leeming with higher prices and large interest free deals, while the Bond's website goes cheap on-line to win the 'price-spy war, meaning The Warehouse can get both bites of the cherry? It's good that no floor staff have lost their gigs, but I do wonder if that means that the Noel Leeming staff will get fewer hours?
Oh well, many people picked it... but there sure has been a lot of change in the gadget / whiteware sellers world lately.

Sharesies

Trade NZ and US shares and funds with Sharesies (affiliate link).

scuwp

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#777115 8-Mar-2013 21:09

khull: I use Noel Leeming for show rooming. I just couldn't be bothered having to ask for a price other than RRP in store. Also our HN down the road sells the exact same product for a better price and I hardly have to speak to anyone for it.

If you don't ask you don't get.

Personally I have always found NL to be very competitive on pricing and they are certainly always worth a haggle over price. They will price match anything at the drop of a hat and with Fly Buys puts the icing on the cake.

Bond and Bond always struck me as the poor cousin in the relationship anyway. I just hope not to many lose their jobs.

Lazy is such an ugly word, I prefer to call it selective participation

DarthKermit

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#777282 9-Mar-2013 10:29

Palmerston North will be one of the 12 Bond & Bonds to close:

http://www.stuff.co.nz/manawatu-standard/news/8399629/Electronics-store-to-close

In PN, NL and B&B are right next door to each other.

Whatifthespacekeyhadneverbeeninvented?

comatosedturtle

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#778759 12-Mar-2013 19:30

It seems like the wharehouses goal is to become the new zealand walmart

tdgeek

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#778761 12-Mar-2013 19:35

comatosedturtle: It seems like the wharehouses goal is to become the new zealand walmart

It already is, taking into account NZ small population. I've been to many Walmarts, the bigger ones have supermarkets included, Chemists. But in NZ The Warehouse is our Walmart, also as said by my ex American gf.

Wade

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#778768 12-Mar-2013 19:51

I cant complain about NL, Went to NL Westgate looking at washing machines, asked for best price on the F & P the wife wants, rrp is $1599, cash price $999, no haggling, just a simple "what is your lowest price?"

I bought a tablet in the boxing day sale also at a crazy price, as a retailer the are very customer focussed

oxnsox

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#778800 12-Mar-2013 21:08

Wonder if it's related, but.......
Norman Ross in Christchurch has rebranded to Harvey Norman.

DarthKermit

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#778807 12-Mar-2013 21:22

oxnsox: Wonder if it's related, but.......
Norman Ross in Christchurch has rebranded to Harvey Norman.

Different company altogether. There were 3 NRs; they've all changed to the HN brand name.

Whatifthespacekeyhadneverbeeninvented?

Dunnersfella

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#778817 12-Mar-2013 21:30

Norman Ross's website shows that the brand is no more...

http://normanross.co.nz/

Two retail brands gone within a very short period of time. I wonder who is next?

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